Singapore Dollar's Upside Momentum Against US Dollar Eases

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Singapore Dollar (SGD) has experienced a slight easing of its upside momentum against the US Dollar (USD). The pair currently trades in a tight intraday band around 1.2700.

The analysts note that despite declining, there has been no significant increase in downward momentum for USD/SGD, and instead of continuing to decline, it is more likely to trade in a range of 1.2680-1.2715. Momentum indicators are mostly flat, and the expectation remains for USD to trade in a range today, most likely between 1.2690 and 1.2720.

The analysts' 1-3 week bias remains negative, with focus on support at 1.2670. A break above 1.2740 would signal a shift into range-trading and reduce prospects of further downside for USD/SGD.